Adani Enterprises’ Airport Unit Raises $1 Billion from Global and Domestic Investors
Shares of Adani Enterprises surged nearly 5% on Wednesday following the announcement that its airport unit had secured a deal to raise approximately 98.25 billion rupees ($1 billion) from a consortium of global and domestic investors.
The binding agreement with Alpha Wave Global, Premji Invest, Temasek, and BlackRock managed funds values Adani Airport Holdings at around $18 billion on a pre-money basis, as per the company statement.
Under the terms of the deal, the investors will subscribe to new shares in three tranches and collectively hold a 5.54% stake in the airport operator after the final tranche is completed, expected by July 2027. The transaction is subject to customary conditions and regulatory approvals.
This fundraising initiative comes on the heels of Adani Enterprises’ 150 billion rupee qualified institutional placement in July.
According to Jeet Adani, non-executive director at Adani Airport Holdings, this investment represents a significant milestone in the expansion of the airports platform. The company intends to continue investing in infrastructure, city-side developments, and non-aeronautical businesses.
CEO Arun Bansal expressed the company’s ambition to establish itself as the world’s largest airports platform, highlighting growth opportunities in India, increasing consumer spending power, and the expansion of city-side developments.
The raised funds will be utilized to enhance and modernize airport infrastructure, expedite the development of Adani Airport City projects, and expand passenger-facing and other non-aeronautical businesses such as ground handling.
These investments are projected to increase the capacity to accommodate approximately 200 million passengers annually, as per the company’s announcement.
Adani Airport Holdings currently manages eight airports across India and contributes to more than 23% of the country’s passenger traffic.
— CNBC’s Priyanka Salve contributed to this report.
